FICCI CE

Benchmarking
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Benchmarking is quality by comparison for achieving better

standards. In the global movement today , the competition is increasing
at a faster rate , and the only way to improve your relative quality and
move upwards is to find out and implement the best industry practices.
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World Class
Recognized as the best.
Benchmarking :- Benchmarked by others even in other sectors
Stages of improvement
Best in Class
Exceeds customer expectations,outperforms
all competitors and has clear competitive edge

Efficient
Meets all internal requirements for cost margins,
asset utilization,cycle-time and measures of excellence

Effective
Satisfies all customer requirements

Incapable
Is ineffective , inefficient and at the risk of failing.
Needs major redesign
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Benchmarking CE

methodology

Benchmarking can be of various types - Competitive benchmarking, product

benchmarking, process benchmarking and best practices benchmarking.
Whatever be the category chosen by the organization, the benchmarking
methodology remains the same in each case. Benchmarking methodology is
explained through 5 simple steps in the following slides.
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A. Identify processes to benchmark

• Select processes to benchmark.

• Measure current process capability.
• Understand detailed process which needs improvement.
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B. Select organization to benchmark

• Select organizations which perform your process.

• Compile a list of world class process parameters.
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C. Compile the required information

• Develop a detailed questionnaire to obtain desired information.

• Obtain the desired information. The information can be obtained
from various sources viz: Internet, trade journals, professional
associations, benchmarking centers, Industry publications,
Industry experts, libraries etc.
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D. Analyze gaps

Too much information is as bad as too little. Gather and analyze only the
information you need to make a direct comparison of performance.
Compare like with like - Compare apples with apples and peers with
peers. Identify the performance gaps and develop an action plan to close
the gaps. Also highlight and quantify the consequences of not closing the
gap.
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E. Develop an action plan

• Review observations of the gap analysis.

• Set new performance standards.
• Develop an action plan for meeting the new performance standards.
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